Cargo shipping to keep EU antitrust exemption until 2024
Topics: CARGO SHIP
First adopted in 2009 and extended for five years in 2014, the consortia block exemption regulation will be prolonged for four more years to April 2024, the European Commission said in a statement.
It allows liner shipping operators with a combined market share below 30% to cooperate to provide joint liner shipping services, known as consortia, but does not allow price-fixing or market-sharing, both of which are hallmarks of cartels.
Following a consultation launched last year, the EU competition watchdog said feedback showed the regulation still offers benefits to the liner shipping industry.
"The consortia block exemption regulation results in efficiencies for carriers that can better use vessels' capacity and offer more connections," the EU competition enforcer said.
The International Chamber of Shipping (ICS), which represents over 80% of the world merchant fleet, welcomed the news.
"The decision is very important because it will also influence the position taken by other competition authorities around the world," ICS Deputy Secretary General Simon Bennett said in a statement. ■